Pension funds demand discount in Dong's unsubsidized projects

Dong Energy must be prepared for the fact that potential investors in projects without state-guaranteed transfer pricing will want a high price for taking on the new risk profile, writes Danish media Børsen.

Photo: Dong Energy

Investors face a whole new world if they choose to buy into Dong Energy's offshore wind farms scheduled to be installed in a few years without state subsidies, writes Danish media Børsen.

Until now, offshore wind farms have constituted a stable and predictable cash flow but this is not necessarily a given after Dong last week committed to construct two offshore wind farms in Germany without receiving a single penny in government subsidies. Now investors will have to speculate in prices much more than before, and they plan to charge accordingly.

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